According to reports, Welspun Energy Ltd today informed that the company would sign memorandums of understanding (MoUs) with Gujarat Energy Development Authority (GEDA) for 200 megawatts of renewable energy certificates (RECs). The MoUs are valued at around Rs 1200 crore.
“We will sign MoUs with GEDA for the 200 Mw RECs including 100 Mw in solar and 100 Mw in wind power generation amounting to around Rs 1200 crore,” Vineet Mittal, co-founder and managing director, Welspun Energy Ltd.
Renewable energy companies are given RECs against the quantum of power they supply into the grid. RECs are traded on the power exchanges. By trading RECs, project developers can partly recover their cost.
The company currently has around 50 Mw of operational solar power capacities in Gujarat, while 10 Mw is located in Rajasthan.
Mittal also informed that the company would be the first to implement a 50 Mw solar power project under Jawaharlal Nehru National Solar Mission (JNNSM). The project is located at Rajasthan and is likely to be commissioned in a month’s time.